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Mr. Dalyell: I am sorry to interrupt again, but it would be helpful if the Secretary of State said something about his attitude to the inclusive fee arrangements.
Sir George Young: In some ports, there is no charge for using the waste facilities--it is included in the overall port fee. In others, there is a separate charge at the point of use. The Government's view is that when an arrangement works adequately, there is no point in our intervening, but there are reserve powers to make the discharge of wastes mandatory for specific sorts of waste or ships if, in spite of adequate and fairly priced provision, the facilities at ports are not being used. Clause 5 contains powers to alter charging practices if they act as a disincentive to the use of reception facilities. In other words, if the reception facilities are so expensive that no one uses them, we have powers to alter the way in which they are charged for. I hope that the Bill contains powers to deal with the hon. Gentleman's important point.
Clause 10 gives the Government the power to require ships to move on, provided that they are not on legitimate business or exercising a right of innocent passage. For example, the power could be used on a ship anchored in the middle of a busy sea lane or a ship deliberately obstructing others in contravention of the collision regulations.
The Government are committed to ensuring that steps are taken to reduce the scale, and mitigate the impact, of an incident that has already occurred. Clause 2 would widen our powers to intervene in a salvage operation following a pollution incident at sea. The powers exist so
that action can be taken if, for example, a shipowner is taking insufficient action or a salvage operation is not being conducted in an appropriate manner.
The current test for intervention stipulates that the power to act is exercisable when an accident has occurred to, or in, a ship and oil from the ship will, or may, cause
Dr. Norman A. Godman (Greenock and Port Glasgow):
When a pilot is guiding a ship through straits or into a harbour, does he have charge of the ship, or is his role that of an adviser to the captain of the vessel?
Sir George Young:
There are some questions that one can answer without hesitation at the Dispatch Box, and others in respect of which one would do well to pause and take professional advice before even thinking about answering. The hon. Gentleman's question falls into the latter category. I shall ensure that my hon. Friend the Under-Secretary has the answer when he winds up.
The geographical limit of the powers has been extended to include UK-controlled waters up to the 200 nautical mile limit. Clause 1 introduces powers for the establishment of temporary exclusion zones at sea. Such zones would be set up for life saving, prevention of pollution and prevention of damage in UK waters, or part of the sea that includes designated areas lying within the 200 nautical mile limit. Details of the size and position of the zones would be regularly broadcast by Her Majesty's Coastguard and notified by the International Maritime Organisation. The innovation is similar to air exclusion zones, which can already be defined, and was among Lord Donaldson's recommendations.
A swift response and co-operation among several parties are vital during emergency counter-pollution operations. Clause 6 simplifies the procedures for the Government to grant indemnities to those who assist with counter-pollution operations at our request. It is important to ensure that mechanisms are in place to provide adequate and timely compensation to those who have suffered loss following a pollution incident at sea. The UK has played an active part in negotiations to secure agreement where international co-operation is necessary. In the past, that led to the setting up of an international fund for compensation for damage arising from oil pollution.
Mr. Dalyell:
Does the Secretary of State think that what he is doing in relation to compensation will prevent people who have to make quick decisions from having compensation at the forefront of their minds, to the possible detriment of the speed at which the decision is made?
Sir George Young:
One of the objects of the Bill is for the Government to give indemnities, to prevent those
The Bill contains provision in clause 15 for the United Kingdom to implement and ratify a protocol to amend the 1976 convention on limitation of liability for maritime claims. The protocol would increase the amount of compensation available to meet maritime claims other than for oil pollution. More important, the protocol would increase the amount of compensation available to passengers and their dependants.
Mr. Cynog Dafis (Ceredigion and Pembroke, North):
Eligibility for compensation certainly remains a sore point and a live issue in Pembrokeshire at the moment. At the beginning of his speech, the Secretary of State gave an undertaking that full compensation would be paid to people affected, but some people who can clearly show that they were affected find that they are not eligible on the ground that they were affected once or twice removed from the original incident.
The right hon. Gentleman may recall the case of one of my constituents, Mr. Barrie Foster, who is an adviser and consultant on tourism activities. He found that courses that he had prepared for commercial purposes had to be cancelled because the market had gone. Mr. Foster has been told, however, that he cannot be compensated because the link between the Sea Empress disaster and his work is some distance removed. Will the Bill address that issue?
Sir George Young:
I am not sure that it will. As with every insurance claim, one has to establish that one has suffered a financial loss. That is true as a result of the Sea Empress, as with any other accident. I understand that compensation is paid for financial hardship when people find themselves in real difficulty. At the moment, there is a 75 per cent. cap on the claims that are being paid, but there will be an opportunity to review that in the next few days, when the relevant committee meets.
The IMO is considering the development of an international regime, to require all ships to carry documentary evidence of the owner's ability to meet third party liabilities. No such requirement currently exists, except for oil tankers. An irresponsible minority of shipowners operate without insurance. We believe that it is unacceptable for them to gain a commercial advantage over responsible shipowners. Clause 16 contains an enabling power for the UK to introduce a requirement for shipowners to have insurance, or another form of financial security, to cover their liabilities. Failure to comply with those requirements could result in tough penalties, including detention and fines of up to £50,000 in the magistrates courts. Our preference would be to exercise those powers in the context of international agreement.
Mr. Eric Clarke (Midlothian):
The Braer disaster was caused by a ship in transit from Norway to Canada. Does the Secretary of State intend to re-route ships to keep them out of territorial waters, because how can he justify boarding a ship to find out whether it is covered for insurance, when it is sailing through the Minch and the Moray firth? How would we achieve that? Would we use
Sir George Young:
As I understand the powers, they apply to ships that come to United Kingdom ports, not to ships of passage through international waters. As I have already said, the IMO is considering an international regime, which would cover all ships. It would require all ships to carry documentary evidence of the owner's ability to meet third party liabilities. We are taking powers in the legislation to deal with the United Kingdom, and on an international dimension, we are pursuing powers to deal with ships outside UK waters.
When the Government invited Lord Donaldson to make his report, he was asked to consider the international and economic implications of any new measures. He endorsed the "user pays" and "polluter pays" principles, in accordance with which the shipping sector should bear the costs that it imposes.
"pollution on a large scale".
Clause 2 changes the wording to "significant" and so ensures that the powers can be used where appropriate, regardless of the size of the incident. It also extends the range of persons to whom directions can be given for the purposes of intervention, by providing that directions can be given to harbour masters, harbour authorities and pilots, in addition to the owner, any person in possession of the ship, the master or the salvor.
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